 "Union Budget explained: How it could shake up your household expenses")
The Union Budget might sound like something meant for economists, but it actually affects every part of our daily lives—from the price of cooking gas to how much we spend on groceries. Let’s break it down in a way that’s easy to understand and directly tied to your everyday expenses.
Groceries: Why your food prices go up or down
The food on your plate — rice, wheat, pulses, and cooking oil — gets affected by decisions in the Union Budget. For instance, when the government lowers taxes on imported cooking oils, like sunflower or soybean oil, prices at your grocery store come down. This actually happened recently when a tax cut reduced the price of oil by Rs 10–20 per litre.
Farmers, too, depend on subsidies for fertilisers. The government sets aside funds for this in the Budget so that farmers can grow crops without spending too much. When these subsidies are high, it keeps the price of staples like wheat and rice in check. Without these, your monthly grocery bill could rise significantly.
Cooking gas: Why LPG costs change
Ever wondered why LPG prices sometimes go up and other times down? It’s often because of subsidies announced in the Budget. For instance, in 2023, the government gave a Rs 200 subsidy per LPG cylinder to Ujjwala Yojana beneficiaries, saving these households about Rs 2,400 a year.
If the government increases these subsidies, LPG becomes more affordable. But if the subsidies are reduced, households have to pay more. This is why the Budget is so important for the cost of cooking gas.
Electricity bills: Cleaner energy means cheaper power
Your electricity bill is directly tied to the government’s energy policies. In the 2024 Budget, Rs 35,000 crore was allocated to renewable energy projects like solar and wind power. These investments aim to lower electricity costs in the future. ALSO READ: From new slabs to crypto tax: 10 key tax reforms in recent Union Budgets
However, in the short term, things like taxes on coal can push up the price of power. Many power plants still rely on coal, so higher taxes on it mean higher electricity bills for you. On the brighter side, tax cuts on solar panels can make it cheaper for households to install rooftop solar systems, helping you save money over time.
Transportation: Fuel prices and public transport
Fuel prices are directly affected by the Budget. If the government reduces taxes (called excise duties) on petrol and diesel, you’ll pay less at the pump. However, if these taxes go up, transportation costs rise, affecting not just your commute but also the cost of goods transported to your local stores.
Public transport like metros and buses also depend on Budget allocations. If more funds are set aside for projects like electric buses or new metro lines, it can make city commuting more affordable and accessible.
Clothing & footwear: Why prices might rise or fall
The Budget decides the taxes on items like clothes and shoes. For example, if taxes on imported fabrics or leather go up, you might notice your favourite pair of shoes or a new shirt becoming more expensive. ALSO READ: Union Budget 2025: Will Nirmala Sitharaman give tax relief to middle class
On the flip side, when the government promotes local production through subsidies or tax cuts—like in the textile industry—prices of everyday clothing can remain stable or even decrease.
Home appliances: Fridges, ACs, and more
Have you ever held off buying a new refrigerator or air conditioner because of high prices? The Budget plays a role here too. If import duties on electronic components rise, appliances become more expensive. But when the government reduces taxes on energy-efficient models, they become more affordable, encouraging households to save both money and energy.
School supplies: Books, uniforms, and stationery
The cost of school supplies—like books, notebooks, and uniforms—is influenced by Budget decisions. Lower taxes on paper or cloth can make these items more affordable. Meanwhile, higher taxes on raw materials or packaging can increase costs. ALSO READ: Nirmala Sitharaman set to script history today with 8th straight Budget
Digital tools like tablets for online learning are also affected by taxes on electronics. A Budget that supports digital education can make these tools more accessible for families.
Healthcare: Affordable medicines and treatments
The price of medicines and healthcare services is closely tied to the Budget. For example, the government sometimes reduces taxes on essential drugs for diseases like diabetes or cancer, making them more affordable. Investments in public health schemes like Ayushman Bharat also ensure cheaper healthcare for millions.